Ayala Land (ALI) Q4 2024 earnings summary

Executive summary

• Net income rose 15% year-on-year to PHP 28.2 billion, exceeding the target of 2x GDP growth.

• Consolidated revenues reached a record PHP 180.7 billion, up 21% year-on-year and surpassing pre-pandemic highs.

• Growth was broad-based across property development, leasing, hospitality, and service businesses, with services segment posting significant growth, particularly in net construction.

• Strategic launches and disciplined inventory management positioned the company well amid industry headwinds, with a focus on high-demand, low-inventory areas.

Financial highlights

• Property development revenues grew 22% to PHP 112.9 billion, led by a 23% rise in residential and 34% in commercial/industrial lots.

• Leasing and hospitality revenues increased 9% to PHP 45.6 billion, with shopping centers and offices both up 9%, and hotels and resorts up 11% to PHP 9.7 billion.

• Service businesses surged 57% to PHP 18 billion, driven by external construction contracts, with net construction up 98%.

• EBIT margin at 33%, within the 30%-35% target range, slightly down from 34% in FY 2023.

• CapEx reached PHP 85 billion, with 46% allocated to residential projects.

Outlook and guidance

• 2025 CapEx planned at PHP 95 billion, with increased allocation to leasing and hospitality assets.

• Property development launches targeted at PHP 100 billion (PHP 80 billion residential, PHP 20 billion commercial/industrial).

• Strategic launches in high-demand, low-inventory areas, with 70% of new residential launches in the premium segment.

• Aim to sustain bottom line growth at 2x GDP, with pre-sales expected to grow at 12%.

• Continued focus on premium segment and horizontal projects, with cautious approach to core segment launches and expansion of leasing assets.